Zscaler price target raised to $225 from $200 at Deutsche Bank

Deutsche Bank raised the firm’s price target on Zscaler (ZS) to $225 from $200 and keeps a Buy rating on the shares. The company’s fiscal Q1 results featured “many positives” including bookings accelerating to 30% year-over-year, but billings growth disappointed at 13% versus buy-side expectations closer to mid-teens, the analyst tells investors in a research note. Further, the firm says CFO Remo Canessa retiring comes as a surprise and adds to skepticism around an expected second half of fiscal year acceleration. However, Zscaler’s commentary suggests sales leadership changes are stabilizing, setting the company up to sell its broader platform solutions, contends Deutsche Bank.